SHARES in Scottish engineering giant Weir Group rose yesterday after an announcement that it is to buy a US mining tools producer in a $1.3 billion (£740 million) cash-and-share deal.

Weir also revealed plans to sell off a loss-making arm of its business.

Shares in the Glasgow-based company rose by more than six per cent in early trading in London after the announcement of its deal to buy Oregon-based Esco. Weir, which makes pumps and valves for the mining and energy industries, said a combination of the Esco deal and the sale of its flow-control business will allow it to focus on its core markets of minerals and oil and gas.

Chief executive Jon Stanton said the moves were an “important development”. He added: With Esco we’ll be joined by a world-class team and add another leading global brand.”